天然气期货
教学

The unknown obvious: when to use log-scale

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There's a semi-wide-spread snake oil "wisdom" in near-quant circles that you need to use log-charts/log-scale/log-transform all the time.

No, you need to use it only when the range of the data been processed exceeds one order of magnitude (data maximum at least 10 times data minimum). Before dat, no-no! Please, don't stabilize the variance unless it'll asks you to.

Now bringing your attention to the important detail -> data 'being processed'. It means that you don't push the log button when your chart's arbitrary time range is 456-986755. You push dat button when the particular domain (part of the chart) you analyze does exceed one order of magnitude.

P.S.: disregard the studies applied, it's all R&D

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